100% B8 Tue 12:01 AM Q it View E OR Go Tools Window Help Graded Assignment 85 Due Apr 21st 2020.pdf (page 5 of 7) 5 DA Question#4 - 1 point At the end of year 1, Pearl Industries had a deferred tax asset account with a balance of $30 million attributable to a temporary book-tax difference of $75 million in a liability for estimated expenses. At the end of year 2, the temporary difference is $ 70 million. Pearl has no other temporary differences. Taxable income for year 2 is $181 million and the tax rate is 40%. Pearl has a valuation allowance of $10 million for the deferred tax asset at the beginning of year 2. Required: 1. Prepare the journal entry(s) to record Pearl's income taxes for year 2, assuming it is more likely than not that the deferred tax asset will be realized. 2. Prepare the journal entry(s) to record Pearl's income taxes for year 2, assuming it is more likely than not that one-half of the deferred tax asset will ultimately be realized. 100% B8 Tue 12:01 AM Q it View E OR Go Tools Window Help Graded Assignment 85 Due Apr 21st 2020.pdf (page 5 of 7) 5 DA Question#4 - 1 point At the end of year 1, Pearl Industries had a deferred tax asset account with a balance of $30 million attributable to a temporary book-tax difference of $75 million in a liability for estimated expenses. At the end of year 2, the temporary difference is $ 70 million. Pearl has no other temporary differences. Taxable income for year 2 is $181 million and the tax rate is 40%. Pearl has a valuation allowance of $10 million for the deferred tax asset at the beginning of year 2. Required: 1. Prepare the journal entry(s) to record Pearl's income taxes for year 2, assuming it is more likely than not that the deferred tax asset will be realized. 2. Prepare the journal entry(s) to record Pearl's income taxes for year 2, assuming it is more likely than not that one-half of the deferred tax asset will ultimately be realized